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PM restructures int'l food units

Published on December 10, 1997.

Philip Morris Cos. said it will strengthen its international food operations with a restructuring that will bring about $200 million in savings by the year 2000. The savings would go toward brand-building activities such as shedding brands that don't fit with core competencies, acquiring brands that do and standardizing food formulations and packaging for brand uniformity. PM said it will take a $630 million charge in the fourth quarter for the restructuring, which will involve closing several manufacturing facilities and consolidating sales and administrative functions that will reduce its workforce by 2,500. The reshuffling will affect only the company's international food business, which contributed $7.8 billion of PM's total $54.7 billlion in operating revenues for the nine months ended in September.